Is Binance a Chinese Gov’t Project? CEO Zhao Responds

• Binance CEO Changpeng Zhao has responded to claims that his company is a Chinese “criminal entity.”
• Binance has taken the crypto by storm since its launch in 2017, in 202, the company reported revenue of $1 billion.

In the last week, there have been rumors going around the crypto community with claims that Binance is a Chinese “criminal entity.” It is no secret that Binance has its roots in China with its CEO being born there and the company first establishing the exchange in the Chinese territory back in 2017.

However, the company had to exit the territory after China banned the transfer and holding of cryptocurrencies. Subsequently, crypto exchanges were forced to exit. Since Binance has set up its headquarters in the Cayman Islands.

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In recent years, the cryptocurrency exchange has come under regulatory fire in several countries for failing to abide by set rules and regulations. Equally, the exchange has faced these claims head-on and has been compiled by most if not all. More recently, the company has been accused of being owned by the Chinese government. ScamBinance, a website dedicated to exposing Binance, claimed that Guangying Chen was the company’s majority shareholder at one time during its existence. He is a Chinese national and a personal friend of Zhao.

Soon after the rumors surfaced, Zhao was quick to respond. He creatively mentioned that Binance has particularly faced harsh treatment from China. He wrote;

Right now, the biggest problem Binance has is that we’ve been labeled a criminal organization in China, along with every other offshore exchange. Conversely, our rivals in the West go to great lengths to portray us as a ‘Chinese company.

The company owns tokens, notably BNB and Binance USD. Binance Coin (BNB) is the native token on the Binance Chain which was initially launched on the Ethereum blockchain before migrating to its own custom blockchain in 2019. Binance USD on the other hand is a stablecoin pegged to the U.S. Dollar.

Read More: KNOW YOUR CRYPTO: BINANCE COIN (BNB)

Only time will tell if this was a well-played tactic by the Chinese government to have an influence on the ever-rising market or just reputation damaging rumor spread by Binance competors.